South Korean police have booked Lee Jae-won, the CEO of Bithumb the country's second-largest cryptocurrency exchange as a bribery suspect. The allegation is straightforward: he helped a sitting lawmaker's son get a job at the company, and in return, that lawmaker went after Bithumb's biggest competitor inside the National Assembly.
In November 2024, Representative Kim Byung-kee sat down for a dinner with Representative Lee at a restaurant in the Mapo district of Seoul. It was at this meeting, according to investigators, that Kim directly asked Lee to arrange employment for his son at Bithumb.
The request was fulfilled. Kim's son was taken on at the exchange. What followed, police now allege, was Kim using his seat on the National Assembly's Political Affairs Committee to target Dunamu Bithumb's main rival over monopoly concerns.
Dunamu operates Upbit, the largest cryptocurrency platform in South Korea. Bithumb, sitting in second place, had a direct financial stake in seeing pressure applied to its dominant competitor.
Police suspect that Kim's legislative actions specifically his focus on "pointing out monopoly issues" targeting Dunamu were not independent oversight but part of a deal. A job for his son, in exchange for going after the competition from the floor of parliament.
It is this suspected arrangement that sits at the heart of the bribery case against Lee Jae-won.
Source: Wu Blockchain X Account
The investigation gained significant ground when a former aide to Kim came forward. This aide had previously exposed several allegations against the lawmaker and gave police a direct account of events.
According to the former aide, Kim held a drinking session with Representative Lee at the Mapo restaurant in November 2024. It was at that session that Kim solicited employment for his son. The statement gave investigators a firsthand account of how the alleged arrangement began.
As the investigation widened, police uncovered a second hiring that they are now examining separately. An individual identified only as “A” a former aide who previously worked in Kim's office has been employed at Bithumb since September of last year.
Investigators are looking into whether this hiring was also connected to the same arrangement, suggesting the relationship between Bithumb and the lawmaker may have gone beyond a single favour.
Police have now raided Bithumb's office in the Gangnam district of Seoul twice. The first raid took place in February 2026. The second followed on June 8, 2026 just days before Lee Jae-won was formally booked as a suspect.
The two searches within four months point to an investigation that has been building steadily, with each raid aimed at gathering further evidence to support the bribery case.
As of June 11, 2026, the case remains under active investigation. Police have booked the CEO as a suspect, secured statements from a former aide, conducted two office raids, and are examining at least two separate hirings connected to the lawmaker.
Whether Representative Kim Byung-kee faces separate charges for his role in the alleged arrangement and what further scrutiny Dunamu's regulatory treatment may receive are questions that remain open as the investigation continues.
For South Korea's cryptocurrency industry, the case lands at a sensitive time. The country is one of the most active crypto markets in the world, and the suggestion that a major exchange sought to shape its competitive landscape through a sitting lawmaker raises questions that go well beyond this single case.
The content is based on ongoing reports and should not be treated as confirmed legal judgment.
